XAU/USD Falls as Strong Payrolls Data Ignites Fed Tightening Speculation
The US Nonfarm Payrolls report exceeded forecasts on Friday, sparking speculation that the Federal Reserve (Fed) might resume its tightening cycle if inflation reaccelerates late this week. The XAU/USD pair fell over 0.40% to $4,412 after reaching a daily high of $4,435.
The strong payrolls data showed that August's employment smashed forecasts of 56K, coming in at 162K, while July's print was upwardly revised from -23K to 21K. The Unemployment Rate remained steady at 4.1%.
US Treasury yields rose, pushing the US Dollar higher, and money markets raised the odds of a Federal Reserve interest rate hike at the September 15-16 meeting to 60%. This week, traders will eye the release of US producer-side data on Thursday, followed by the Consumer Price Index (CPI) on Friday.